EN
Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality?
Abstract
This paper reports on the results of a research into the relationship between audit quality during the years before and after the incorporation of the Audit Oversight Board (AOB) in Malaysia in 2010. As the AOB only audits auditors of listed companies this study is based on 50 companies’ audited financial statements 2 years before and after AOB was established. A total of 200 firm years were observed. Using reported companies’ earnings to proxy for earnings and audit quality the data collected were analyzed using the modified Jones model for discretionary accruals. The study does find the discretionary accruals to be lower after AOB was established although the change is not significant. Although not significant statistically it evidences that having an independent auditor of the auditors with sanctioning powers does contribute towards greater assurance of audit quality being delivered and that regulation of audit complements the self-regulating regime by the profession for auditors of listed companies in Malaysia.
Keywords
Details
Primary Language
English
Subjects
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Journal Section
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Publication Date
March 1, 2015
Submission Date
March 1, 2015
Acceptance Date
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Published in Issue
Year 2015 Volume: 5 Number: 1
APA
Ismail, H., & Theng, U. C. (2015). Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality? International Journal of Economics and Financial Issues, 5(1), 360-365. https://izlik.org/JA34HX32BX
AMA
1.Ismail H, Theng UC. Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality? IJEFI. 2015;5(1):360-365. https://izlik.org/JA34HX32BX
Chicago
Ismail, Hashanah, and Ung Chui Theng. 2015. “Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality?”. International Journal of Economics and Financial Issues 5 (1): 360-65. https://izlik.org/JA34HX32BX.
EndNote
Ismail H, Theng UC (March 1, 2015) Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality? International Journal of Economics and Financial Issues 5 1 360–365.
IEEE
[1]H. Ismail and U. C. Theng, “Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality?”, IJEFI, vol. 5, no. 1, pp. 360–365, Mar. 2015, [Online]. Available: https://izlik.org/JA34HX32BX
ISNAD
Ismail, Hashanah - Theng, Ung Chui. “Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality?”. International Journal of Economics and Financial Issues 5/1 (March 1, 2015): 360-365. https://izlik.org/JA34HX32BX.
JAMA
1.Ismail H, Theng UC. Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality? IJEFI. 2015;5:360–365.
MLA
Ismail, Hashanah, and Ung Chui Theng. “Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality?”. International Journal of Economics and Financial Issues, vol. 5, no. 1, Mar. 2015, pp. 360-5, https://izlik.org/JA34HX32BX.
Vancouver
1.Hashanah Ismail, Ung Chui Theng. Auditing the Auditors: Has the Establishment of the Audit Oversight Board Affected Audit Quality? IJEFI [Internet]. 2015 Mar. 1;5(1):360-5. Available from: https://izlik.org/JA34HX32BX